DRAFT ANNUAL BUSINESS PLAN 2020-21 - tatiara.sa.gov.au€¦ · Our 2020/21 Annual Business Plan and...

DRAFT ANNUAL BUSINESS PLAN2020-21

Tatiara District Council 2020/21 DRAFT Annual Business Plan

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Contents

Section 1 - Mayor’s Message .............................................................................................................. 3

Section 2 – Executive Summary ........................................................................................................ 5

Section 3 – Our Strategy & Focus ...................................................................................................... 7

Section 4 – 2020/21 Annual Business Plan & Budget ........................................................................ 8

2020/21 Budget Details ..................................................................................................................... 11

Section 5 – 2020/21 Rating Information .......................................................................................... 14

Section 6 – Impact on Council’s Financial Position ........................................................................ 24

Appendix 1 – Objectives and Activities - 2020-21 ............................................................................ 35

Appendix 2 – Rate Rebate Policy ..................................................................................................... 39


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Section 1 - Mayor’s Message I am pleased to present Council’s 2020/2021 Annual Business Plan and Budget to the Tatiara community. Our Business Plan and Budget balance the retention of existing services levels, maintenance and renewal of assets, and a small number of new initiatives designed to support our economy, improve the amenity of our district and make the Tatiara a better place to live for all of us. In setting our Budget, we have considered the unprecedented challenges this year has presented to all of us. When we thought the bushfires affecting much of Australia and our neighbours to the south were going to be the defining moment of 2020, COVID-19 turned all of our lives upside down. The health emergency has changed the way we live and do business. While restrictions are easing, some of these changes will likely stay with us for a long time. The challenges posed by the pandemic are reflected in our Budget. We have reduced the general rates increase projected by our Long Term Financial Plan from 3% to 2.1%. We have maintained CWMS charges at the 2019/20 levels and reduced revenue from activities like our cinemas or Keith Institute and Bordertown Civic Centre to reflect that the full reinstatement of indoor gatherings is likely some months away. We have allocated $30,000 towards economic development to drive the implementation of our Economic Development and Tourism Strategy. We are proposing the development of the Bordertown Caravan Park with construction of eight new cabins, dependent on external funding support. The proposed $1.4m project will provide economic benefit to the district during construction and from increased visitation. It will also help diversify Council’s revenue streams and reduce our reliance on general rates to support Council services and infrastructure. Our budget also reflects the implementation of 15 projects totalling more than $1.2m under the federal government’s Drought Communities Programme, and ranging from the redevelopment of the football change rooms at Padthaway to the installation of dryland soil moisture probes and weather stations, the resurfacing of the Mundulla netball courts to upgrading the lighting at the Tatiara Karting Club track. The budgeted 2.1% in additional general rate revenue follows four years which have seen a 2.8% increase in 2019/20, 2.8% increase in 2018/19, 2.4% increase in 2017/18, and a zero rate increase in 2016/17 respectively. Although the overall rate increase is 2.1%, rate payers will be affected differently depending on changes to their property values. Rural areas and towns in our district have seen different changes in their valuations which will be reflected in the increases or decreases of rates to be paid for these properties. Valuations of rural properties have increased by an average 13%, whereas valuations of residential properties have increased by an average 2%, meaning residential properties will be less impacted by rate increases, and more rates will be generated from rural properties. I am confident that our Annual Business Plan and Budget balance financial prudence and community needs. They provide for a broad range of services, programs and infrastructure projects and are a reflection of our Strategic Plan. They recognise that our businesses and residents rely on a well maintained road network and allocate substantial funds to maintenance and upgrades to important roads and intersections, including the widening of Pigeon Flat Road and Tatiara Road, and the replacement of Victoria Parade bridge. They also reflect the importance of the amenity of our area to attract visitors and new residents to the Tatiara, and provide for well-maintained facilities like our parks and gardens, public toilets, playgrounds and sporting fields. On behalf of Council, I would finally like to acknowledge that a key ingredient in delivering our Strategic Plan and making the Tatiara an even better place to live, work and play is the hard work of our district’s countless volunteers.

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I would like to thank all our volunteers and community members who have contributed so much over the last twelve months and look forward to working with you over the coming year. Mr Graham Excell Mayor

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Section 2 – Executive Summary Our 2020/21 Annual Business Plan and Budget provide for a broad range of services, programs and infrastructure projects and are a reflection of the strategic direction we have adopted in our Strategic Plan 2016-2020. They have been developed through a rigorous process of consultation and review with staff, senior management and Council, and aim to balance financial sustainability and community needs. The 2020/21 Budget proposes to raise operating revenue of $17,297,279 compared to operating expenditure of $17,309,754, resulting in a small deficit of $12,475. The proposed 2020/21 expenditure compares to budgeted operating expenditure of $17.3 million in 2019/20 and actual expenditure of $15.3 million in 2018/19. The projected revenue includes $10,660,245 in rates. Council has budgeted to receive a 2.1% increase in general rates in 2020/21 compared to 2019/20. While we work hard to raise other revenue through fees and external grants, the reality is that as a small regional council we have limited opportunity to do so. 62% of the income required to maintain services and infrastructure ranging from swimming pools to libraries, to roads and bridges come from the rates we raise. A key focus continues to be the attraction of external funding to stretch our dollar further.

• Council received a considerably larger than normal amount of Roads to Recovery funding from the federal government in 2016/17. While funding returned to lesser levels in 2017/18 and 2018/19, it increased by an extra $283,378 above the annual allocation of $566,753 for 2019/20 which greatly assisted in the maintenance of our road network. Our allocation for 2020/21 is $566,753.

• Due to the federal government’s other substantial commitments during the current health emergency, we have budgeted for a nil increase in our Federal Government Financial Assistance Grants.

• We are seeking funding from state and federal governments for projects ranging from bridge renewal to roads upgrades, airstrips to visitor accommodation.

This Plan details the activities and resources required over the next twelve months to achieve the strategic objectives described in Council’s 2016-20 Strategic Plan and to continue to deliver the large range of services Council provides to the community. It provides for well-maintained facilities like our parks and gardens, public toilets, playgrounds and sporting fields, and consider a small number of economic and community development activities. It also includes detail of proposed capital expenditure to improve and renew Council’s roads, buildings and recreational facilities. A small selection of projects and activities is shown below: Our Transport Network Our businesses and residents rely on a well-maintained transport network and we have allocated substantial funds to maintenance and upgrades to important roads and intersections to ensure they are fit for purpose, including four major upgrade projects:

• Pigeon Flat Road widening – total cost $500,000, seeking Special Local Roads Program (SLRP) funding of $330,000;

• Tatiara Road widening – total cost $400,000, seeking SLRP funding of $270,000;

• Victoria Parade Bridge replacement – total cost $420,000, seeking Bridges Renewal Program funding of $210,000; and

• Bordertown Airstrip reseal – total cost $204,000, federal government funding of $102,000 has been approved.

In addition, Council will continue to maintain existing networks with more than $1 million allocated for resheeting unsealed roads and $750,000 allocated for resealing sealed roads. Footpath Council will undertake a number of footpath projects, totalling more than $210,000. These include

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works in Bruce Avenue, Keith, and McLeod St, Cannawigara Road and DeCourcey St, Bordertown. Bordertown Caravan Park Our budget recognises the importance of the visitor economy to our district and make a substantial allocation to the development of the Bordertown Caravan Park. Council took over the management of the Park in March 2020, reflected in the operating costs detailed in the 2020/21 Budget. To maximise the Park’s potential to attract visitors and new residents to the Tatiara, the budget also proposes the improvement of visitor accommodation and new, modern cabins at the Park. The proposed $1.4m ($700,000 allocation of Council funds matched by external funding, tbc) project will not only provide economic benefit to the district during construction and from increased visitation, it will also help diversify Council’s revenue streams and reduce our reliance on general rates income to fund our services and infrastructure. Economic Development $30,000 have been allocated for the implementation of the Economic and Tourism Development Strategy 2020-2024. Council will also continue to support successful migrant settlement in our district, essential to the continued success of many of our local businesses. Drought Communities Programme The federal government’s Drought Communities Programme will provide $1 million in funding, for projects totalling $1,249,593. Community groups will contribute $184,774 to projects, while the remainder, including project management and the development of an Adverse Event Plan will be funded by Council. Projects that will be delivered under the Drought Communities Programme include the redevelopment of the football change rooms at Padthaway Football and Cricket Club, $280,000 funding, while $200,000 in funding will help address leaks and improving filtration flow through the 55-year-old Bordertown Swimming Pool by replacing filtration pipes and reducing pool depths at the deep end. Other projects include creating strategic water access points for firefighting purposes across the Tatiara, $100,000, and the installation of dryland soil moisture probes and weather stations as well as workshops on their use in partnership with the Agricultural Bureau of South Australia, $45,500. The Keith Golf Club, Mundulla Netball Club, Tatiara Karting Club, Bordertown Golf Club, Bordertown Bowling Club, Western Flat Community Sport & Recreation Inc., Mundulla on the Move, Keith & Tintinara Show, Keith Football Club, Bordertown Cricket Club and Keith Caravan Park/Keith Swimming Pool share the remainder of the funding. Keith Industrial Estate Council will proceed with Stage 2 of the Keith Industrial Estate as there are no more allotments available for purchase. It is proposed to create five additional allotments off Old Wynarling Road. Council deposits funds from land sales into a land development reserve and then uses these funds to develop additional land in both the Keith and Bordertown Industrial Estates. $600,000 has been included in the 2020/21 budget to undertake designs for the infrastructure, which includes roads, common effluent, water & electricity supply and telecommunications networks and to commence the project. Approximately 35% of the funds will be allocated towards the land development and 65% towards the road network. In summary, we have continued the careful and prudent approach detailed in our 10-year Long Term Financial Plan, including focusing our efforts and resources on maintaining services and infrastructure. Considerable effort has gone into reducing expenditure by identifying savings and we will continue to seek productivity improvements across all our services and programs. We have also considered opportunities to increase our revenue through alternative income streams.

Ms Anne Champness Chief Executive Officer

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Section 3 – Our Strategy & Focus Under section 122 of the Local Government Act 1999 (the Act), Council is required to establish a set of Strategic Management Plans, including a Strategic Plan, a Long Term Financial Plan and Asset Management Plans. Our Strategic Plan 2016-2020 (currently undergoing review in accordance with the Local Government Act 1999) establishes a framework for our future. It sets Council’s direction by establishing our Vision, Mission and long-term Strategic Objectives. The Strategic Plan and its framework form the basis for the preparation of our Annual Business Plan and Budget, section 123 of the Act. The Annual Business Plan summarises the long-term objectives from our Strategic Plan and outlines the activities proposed for the financial year, it assesses our financial requirements for the year, and sets out our rating structure. Both plans will continue to provide Council and our community with a key focus and direction to ensure that the vision, mission and strategic objectives of the Council are effectively implemented. VISION Shaping a sustainable future by realising the potential of our people and region MISSION To make the Tatiara a better and safer place in which to live, work and visit. VALUES

• We value rigorous debate conducted by well-informed Council Members

• We will facilitate socially and environmentally responsible development.

• We will display leadership and reflect community aspirations.

• We believe in transparency and accountability

• We value respect and loyalty

GOALS 1. A Safe and Connected Community

2. Infrastructure & Assets

3. Economic Development

4. Natural Environment & Sustainable Living

5. Governance & Leadership

Council’s Strategic Plan details the strategies that will allow us to achieve our goals in line with our vision and mission. This Annual Business Plan includes a summary of our long-term objectives (as set out in our strategic management plans) and an outline of our objectives for the financial year and the activities that we intend to undertake to achieve those objectives. These objectives and activities relevant to the 2020/21 financial year are detailed in Appendix 1. Refer to APPENDIX 1.

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Section 4 – 2020/21 Annual Business Plan & Budget In preparing the Annual Business Plan and Budget for the 2020/21 Financial Year, Council has given due consideration to the objectives and strategies included in its Strategic Plan 2016-2020 in prioritising its planned operational and capital activities for the year. Council has limited revenue sources to pay for the vast array of services that it provides. Council receives considerable State and Federal grants and subsidies and it can raise income through fee paying activities, commercial activities or utilising debt. Council’s primary source of revenue, however, is through a property-based tax – Council Rates, as illustrated in the following graph.

The Budget for 2020/21 provides for operating expenditure of $17.3 million (including depreciation of $5.2 million), which compares to budgeted operating expenditure of $17.2 million in 2019/20 and actual expenditure of $15.3 million in 2018/19. The following specific activities are incorporated in the 2020/21 Budget: Please note, “Full Cost” shown represents all the direct cost associated with delivering the service (e.g. salaries, materials, plant etc.), plus any indirect costs (e.g. employee overheads and a proportion of the internal costs).

KEY PROGRAM COSTS: 2020/21 FULL COST BUDGET PROGRAM Budget Income Budget Expense % of Exp

• Administration 14,647,598 3,275,761 13.6%

• Public Order & Safety 47,200 224,761 0.9%

• Health 103,450 144,523 0.6%

• Social Security & Welfare 1,201,774 1,571,319 6.5%

• Housing & Community Amenities 1,718,080 3,163,490 13.2%

• Sport & Recreation 237,994 2,417,239 10.1%

• Agricultural Services (includes Regional Landscape Levy) 3,419 609,326 2.5%

• Mining, Manufacturing & Construction 500,300 772,145 3.2%

• Transport & Communication 2,071,577 6,473,537 26.9%

• Economic Affairs 891,300 1,932,547 8.0%

• Other Purposes NEC 2,622,700 3,442,742 14.3%

Total Program Expenditure and Income 24,045,392 24,027,390 100.0%

Transfers To & From Reserves (includes carry forwards) 1,094,655 533,863

Budget Balance - Surplus 578,793

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$

Income Source (%)

General Rates Grants Other

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PROJECTS & CAPITAL WORKS EXPENDITURE 2020/21 PROGRAM Budget Income Budget Expense % of Exp

• Information technology (1) 539,422 513,487 2.1%

• Dog Control 42,700 80,689 0.3%

• Fire Protection 4,500 78,299 0.3%

• Health Inspection 98,450 121,323 0.5%

• Cemeteries 67,000 297,226 1.2%

• Effluent Drainage 868,810 448,774 1.9%

• Public Conveniences 0 236,910 1.0%

• Sanitary & Garbage 772,570 1,092,420 4.5%

• Street Cleaning 0 63,514 0.3%

• Street Lighting 0 157,000 0.7%

• Town Planning 0 102,973 0.4%

• Land Development 600 722,473 3.0%

• Halls 50,730 558,582 2.3%

• Libraries 24,000 431,926 1.8%

• National Estates 1,300 54,421 0.2%

• Parks & Gardens 1,000 898,553 3.7%

• Sport & Recreation Projects 43,109 27,145 0.1%

• Swimming Pools 117,855 428,112 1.8%

• Quarries (2) 450,000 512,000 2.1%

• Construction Works (Capital Works) 4,128,179 17.2% Which includes:

o Road Construction 1,520,000 6.3% o Resheets 1,050,000 4.4% o Reseals 750,000 3.1% o Kerb and Gutter 180,000 0.8% o Footpaths 177,000 0.7%

• Maintenance Works 2,055,179 8.6%

Which Includes: o Patrol Grading 700,000 2.9% o Sealed Road Maintenance 360,000 1.5% o Unsealed Road Maintenance 235,908 1.0%

• Economic Development (3) 704,000 1,529,110 6.4%

• Bordertown Caravan Park 182,500 293,087 1.2%

• Plant Operations (4) 1,516,000 1,356,000 5.6%

• Depot & Overhead Expenses (5) 1,009,700 1,990,869 8.3%

This list and the following one are not exhaustive and are intended to provide an indication of some of the projects and activities included within the Budget for 2020/2021. For a more detailed breakdown of all Budget items, please refer to pages 11 to 13 and the accompanying notes and references. Please Note:

1. Includes internal transfer allocation towards administration & IT costs attributed across all budget areas

2. Includes internal transfer allocation towards rubble stock costs attributed across roadwork budgets

3. Includes a grant application of $700,000 for a proposed caravan park development

4. Includes internal transfer of plant machinery costs attributed to applicable accounts

5. Includes internal transfer of labour overhead costs attributed to applicable accounts

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KEY PROJECT PRIORITIES FOR 2020/21 BUDGET

PROGRAM Budget Income

Budget Expense % of Exp

• Community Grant Submissions 58,657 0.24%

• Drought Communities Projects 1,000,000 1,249,593 5.20%

• Community Planning

• Volunteer Functions

• Community Development Projects

• Tatiara Schools Chaplaincy

35,000 8,000

27,000 10,000

0.15% 0.03% 0.11% 0.04%

• Keith Industrial Estate - 2nd Stage Commence planning & construction for the basic infrastructure: including SA Water, CWMS, Power Networks, Telecommunications, Roads and Kerb and Gutter

600,000

2.50%

• Bordertown Shell Land 100,000 0.42%

• Keith Institute – Air conditioner for Ruth Wheal

• Keith Community Library – Extra opening times and Rhyme time

6,000 4,800

0.02% 0.02%

• Parks & Gardens Replacemnts 35,000 0.15%

• Cemetery Development o Mundulla Niche Wall and New Lawn o Electronic Grave Register o Bordertown New Lawn

50,000 0.21%

• Tatiara Pools o Bordertown Pool – Structural Works

35,000

0.15%

• Road Construction o Bordertown Pigeon Flat Rd – Widen (1) o Bordertown Tatiara Rd – Widen (1) o Victoria Parade Bridge – Replacement (1) (4) o Wirrega North Road – Widen (Stage 2) o Bordertown Airfield – Reseal (1))

300,000 270,000 420,000

102,000

500,000 400,000 420,000 200,000

$204,000

0.89% 0.89% 0.89% 0.89% 0.85%

• Footpath Construction o Keith Bruce Avenue

220,000

0.92%

• Bordertown Caravan Park Cabins (1) 700,000 1,400,000 5.83%

• Plant Replacement 581,000 2.42%

• Caring for Country (LAP Contribution)(3) 40,000 0.17%

Please note: 1. Items listed above with an (1) may/are dependent on the securing of grant funding. 2. Budget income only includes Commonwealth and State Government Grants, with remaining income to be secured

through: rate revenue; loans from the Local Government Finance Authority; and internal loans from Council’s reserves.

3. Substantial funding shared with Coorong Council for environmental projects. 4. Income from Council’s Reserves, held for the same purpose. 5. Income from Sporting Clubs

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2020/21 Budget Details

2019-20 – 3rd Review

Budget 2020-21 Budget

Acc. DESCRIPTION Inc. Exp. Inc. Exp.

$ $ $ $

10 Administration

1000 Revenue NEC (General Ops) 188 0 0 0

1020 Revenue NEC (Rates) 9,089,361 175,943 9,090,465 8,800

1050 Governance - Elected Members 500 685,940 500 678,847

1051 Governance - Other 0 238,191 0 288,879

1055 Revenue NEC (Financial Services)

3,226,702 0 3,198,081 0

1070 Revenue NEC (Keith Office) 118,982 100,000 119,200 100,000

1080 Accounting / Finance Services 1,502,011 1,458,194 1,498,280 1,472,257

1081 Information Technology 576,375 601,583 539,422 513,487

1082 Communications 0 10,000 0 0

1083 Rates Administration 40,000 46,000 37,000 43,000

1085 Bordertown Occupancy 77,405 120,108 77,405 78,763

1089 Payroll / HR 0 6,000 0 6,000

1091 Keith Occupancy 87,245 83,951 87,245 85,728

Program Totals 14,718,769 3,525,910 14,647,598 3,275,761

11 Public Order & Safety

1100 Dog Control 44,500 80,020 42,700 80,689

1110 Fire Protection 4,500 79,582 4,500 78,299

1130 Impounding Livestock 200 650 0 400

1140 Other Public Order & Safety 500 63,764 0 64,173

1150 Litter &Nuisance Control 0 1,200 0 1,200

Program Totals 49,700 225,216 47,200 224,761

12 Health

1240 Health Centres 0 20,000 0 0

1250 Health Immunisation Services 6,100 11,215 5,000 8,500

1260 Health Inspection 106,045 119,224 98,450 121,323

1270 Vertebrate Pests 0 1,700 0 1,700

1280 Noxious Insects 0 350 0 0

1290 Other Health Services 167 13,000 0 13,000

Program Totals 112,312 165,489 103,450 144,523

13 Social Security & Welfare

1320 Senior Citizens 0 9,700 0 9,700

1330 Other Social Services & Welfare 45,961 348,378 1,201,774 1,561,619

Program Totals 45,961 358,078 1,201,774 1,571,319

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DESCRIPTION

2019/20 – 3rd Review Budget

2020/21 Budget

Acc. Inc. Exp. Inc. Exp.

$ $ $ $

14 Housing & Com. Amenities

1400 Cemeteries 68,100 329,930 67,000 316,400

1411 Effluent Drainage - Bordertown 560,242 185,769 561,000 174,069

1412 Effluent Drainage – Keith 247,185 97,274 246,385 97,274

1413 Effluent Drainage - Mundulla 33,945 23,838 33,945 37,338

1414 Effluent Drainage - Wolseley 23,565 29,099 23,565 38,599

1420 Public Conveniences 88 253,742 0 241,362

1430 Sanitary and Garbage 753,712 1,117,666 732,570 1,117,166

1440 Street Cleaning 0 61,965 0 55,744

1450 Street Lighting 29,987 219,500 0 217,500

1460 Town Planning 0 110,274 0 117,274

1465 Flood Prevention 0 5,000 0 1,500

1477 Land Development 1,718 135,191 0 120,191

1485 Wolseley Water Supply 9,000 13,200 9,000 13,200

Program Totals 1,727,542 2,582,448 1,673,465 2,547,617

16 Sport & Recreation

1600 Halls 81,298 770,005 50,730 558,582

1610 Bordertown Library 22,647 418,216 22,000 407,926

1615 Keith Community Library 1,905 26,644 2,000 24,000

1620 National Estate 1,700 55,468 1,300 54,421

1630 Parks & Gardens 2,234 1,034,896 1,000 898,553

1640 Sport & Recreation 79,633 421,114 43,109 27,145

1650 Swimming Pool - B/town 93,168 272,977 84,755 261,084

1660 Swimming Pool - Keith 33,057 224,004 33,100 167,028

1670 Other Cultural Services 0 24,800 0 16,500

Other Community Structures (NEC)

0 31,500 0 2,000

Program Totals 315,642 3,279,624 237,994 2,417,239

18 Agricultural Services

1800 Land Management - Conservation

3,330 608,033 3,419 607,326

1820 Land Management - Agric Pests 0 2,000 0 2,000

Program Totals 3,330 610,033 3,419 609,326

19 Mining, Manufacturing &

Const.

1900 Development Act 54,605 275,930 50,300 260,145

1920 Quarries 400,000 595,000 450,000 512,000

Program Totals 454,605 870,930 500,300 772,145

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Acc.

2019/20 – 3rd Review

Budget 2020/21 Budget

DESCRIPTION Inc. Exp. Inc. Exp.

$ $ $ $

20 Transport & Communication

2000 Construction Works (Capital Wks) 33,571 4,421,923 0 4,128,179

2010 Maintenance Works 0 2,170,833 0 2,055,978

2002 Road Grants 1,870,650 0 2,069,727 0

2030 Parking 1,057 3,550 600 2,400

2040 Aerodrome 1,250 44,710 1,250 239,480

2050 Rural Addressing 100 105 0 0

2070 Other Transport & Communication 0 50,000 0 47,500

Program Totals 1,906,628 6,691,121 2,071,577 6,473,537

21 Economic Affairs

2100 Economic Development 4,470 200,430 704,000 1,529,110

2110 Area Promotion (VIC) 0 36,374 0 0

2120 Caravan Park 38,299 360,058 182,500 293,087

2150 Saleyards 6,538 6,750 4,800 12,000

2160 Tourism 0 200,731 0 98,350

Program Totals 49,307 804,343 891,300 1,932,547

22 Other Purposes NEC

2210 Plant Operations 1,626,091 1,594,720 1,516,000 1,356,000

2220 Depot & Overhead Expenses 975,166 2,003,451 1,009,700 1,990,869

2230 Vandalism 0 3,000 0 1,000

2250 Other Property & Services 71,000 75,474 79,000 79,873

2260 Other General Service 18,000 15,000 18,000 15,000

Program Totals 2,690,257 3,691,645 2,622,700 3,442,742

Grand Totals 22,074,053 22,804,837 24,045,392 24,027,390

Surplus / Deficit -730,784 18,001

Reserve Transfers – From 1,516,581 1,094,655

Reserve Transfers – To 641,695 533,863

Total 144,102 578,793

The cash budget shows a surplus of $578,793 which Council will review during the three Budget Reviews to be carried out in 2020/21.

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Section 5 – 2020/21 Rating Information This section sets out the policy position of the Tatiara District Council for setting and collecting rates from its community. Its purpose is to increase the level of understanding about the legislative framework for Local Government rates and the principles that underpin the rating policies of the Council. This section covers:

• 5.1 Strategic focus • 5.9 Service charges

o Regional Landscape Levy

• 5.2 Business impact statement o Community Wastewater Management

• 5.3 Issues of consistency & comparability o Kerbside Waste Collection

• 5.4 Method used to value land • 5.10 Other Sources of Revenue

• 5.5 Adoption of valuations • 5.11 Rate concessions

• 5.6 General rates o Other Centrelink beneficiaries

• 5.7 Minimum Rate o Concessions guide

• 5.8 Differential rates • 5.12 Rate Capping Rebate o Residential • 5.13 Quarterly payment of rates o Commercial - Shop • 5.14 Methods by which rates may be paid o Commercial – Office • 5.15 Postponement of Rates for Seniors o Commercial – Other • 5.16 Late Payment of Rates o Industry – Light • 5.17 Rebate of Rates o Industry – Other • 5.18 Sale of Land for Non Payment of Rates o Primary Production o Vacant Land

• 5.19 Public Availability of Annual Business Plan

o Other 5.1 Strategic Focus

In setting its rates for the 2020/21 financial year, Council has budgeted for an overall general rate revenue increase of 2.1% (compared to last year) and in doing so has considered the following:

• Its statutory obligations under the Local Government Act 1999.

• Its revised Strategic Plan adopted in September 2016 and subsequently reviewed annually, which sets long-term objectives and priorities for the district. The Strategic Plan was developed following an extensive series of public meetings and consultation with local businesses, community groups and interested members of the community.

• The current economic climate in which the major factors are: o Increased operational costs. o The continuing trend for state government to shift responsibilities – and costs - to local

government. o Decreases in external funding opportunities for community projects placing increased

pressure on Council to fund such projects through rate revenue.

• The specific issues faced by our community, which are: o The need for a significant capital works program to replace and up-grade Council’s

extensive road network and road infrastructure assets. o Stormwater drainage management plans. o The inability to raise sufficient revenue to lift the road infrastructure to the standards

requested by electors.

• The impact of rates on the community, including: o Householders, businesses, rural living landowners and primary producers, and the need

to share the rate burden between the ratepayers. o Council’s desire to maintain a conservative low net debt management of its finances,

which is mindful of the ratepayers’ ability to pay the levied rate/tax. o The benefit ratepayers receive from the services provided by the Council.

o The need to equitably distribute the rate burden across the community taking into account the principles of taxation.

o Minimising the level of general rates required by levying charges for the provision of CWM Schemes and kerbside waste collection on a user pays basis, so that the full cost of operating and providing the service is recovered from those ratepayers who benefit from the service. The expanding community expectations to maintain and improve community infrastructure and services, whilst still providing financial restraint by keeping Council rates as low as possible.

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o Increased liability risks arising from legal compliance becoming more complex and changes to community attitudes on acceptance of responsibility for one’s own actions.

5.2 Business Impact Statement

The Council has considered the impact of rates on all businesses in the Council area, including Primary production. In considering the impact, Council is continuing to assess the following matters:

• Those elements of the Council’s Strategic Management Plan relating to business development.

• The equity of the distribution of the rate burden.

• Council’s policy on facilitating local economic development through its financial support to the Limestone Coast Regional Development Board, who employ a small business advisor.

5.3 Issues of Consistency and Comparability Across Council Areas

For the purpose of assessing issues relating to consistency and comparability across adjoining Council areas in the imposition of rates, Council undertakes comparisons on their rates levied by other Local Government entities in the region. With this information, Council is able to form the opinion that the Tatiara District Council method or rating is similar to other councils but the rates in the $ were on the high side when compared with other rural Councils:

• The Tatiara District Council policy of differential rating on locality and land use (e.g. distinguishing land by the development zone and then the lands land use) appears to be a common practice of our neighbouring Councils.

• It is common between the Councils to have a lesser rate in the $ in rural areas than in townships as those in townships receive more services.

• It is common to have different ratio of rates raised between residential, commercial & industrial, rural living and rural areas based on the different services that each area receive.

• The minimum charge of $560 in this Council is around average of the fixed charges applied by neighbouring Councils.

• Most Councils use a capital valuation as a basis for rating purposes. 5.4 Method Used to Value Land

1. Council may adopt one of three valuation methodologies to value the properties in its area. They are: a. Capital Value: the value of the land and all the improvements on the land. b. Site Value: the value of the land and any improvements which permanently affect the

amenity of use of the land, such as drainage works, but excluding the value of buildings and other improvements.

c. Annual Value: a valuation of the rental potential of the property.

2. The Council has decided to continue to use capital value (the value of the land and all of the improvements on the land) as the basis for valuing land within the Council area. The Council considers that this method of valuing land provides the fairest method of distributing the rate burden across all ratepayers on the following basis:

a. The equity principle of taxation requires that ratepayers of similar wealth pay similar

taxes and ratepayers of greater wealth pay more tax than ratepayers of lesser wealth; b. Property value is a relatively good indicator of wealth and capital value, which closely

approximates the market value of a property, provides the best indicator of overall property value;

c. The distribution of property values throughout the Council area is such that few residential ratepayers will pay significantly more than the average rate per property.

3. The Land against which rates may be assessed will include:

a. Any piece or section of land subject to separate ownership or occupation; or b. Any aggregation of contiguous land subject to the same ownership or occupation.

16

5.5 Adoption of Valuations

The Council will adopt the valuations made by the Valuer-General as provided to the Council on Tuesday 1 July 2020. If you are dissatisfied with the valuation made by the Valuer-General then you may object to the Valuer-General in writing, within 60 days of receiving this notice of the valuation, explaining the basis for the objection - provided you have not: a. Previously received a notice of this valuation under the Local Government Act, in which case

the objection period is 60 days from the receipt of the first notice; or b. Previously had an objection to the valuation considered by the Valuer-General.

The contact details for the State Valuation Officer are: State Valuation Office GPO Box 1354 Adelaide SA 5001 Tel: 1300 653 345 Email: [email protected] Council has no role in this process. It is important to note that the lodgement of an objection does not change the due date for the payment of rates.

2015/16 2016/2017 2017/2018 2018/2019 2019/20 2020/20

$ 1,603,456,600 1,690,347,000 1,757,209,800 1,833,604,320 2,083,170,040 2,308,315,780

$ Change 4,331,700 86,890,400 66,862,800 77,654,520 248,305,720 225,145,740.0

% Change 0.27% 5.42% 3.96% 4.42% 13.5% 10.81%

5.6 General Rates

All land within the Council area, except for land within a specific exemption (e.g. Crown Land, Council occupied land and other land prescribed in the Local Government Act – refer to Section 147 of the Act), is rateable. The Local Government Act provides for a Council to raise revenue for the broad purposes of the Council through a general rate, which applies to all rateable properties.

0

500

1,000

1,500

2,000

2,500

Mill

ion

s

Property Valuations

mailto:[email protected]

17

Financial Indicator 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

% % % % % %

Rate Increase -4.42% 0.0% 2.4% 2.8% 2.8% 2.1%

5 Year Trend 1.88% 0.98% 0.86% 0.76% 0.72% 2.02%

For the 2020/21 financial year, Council has budgeted to increase the general rate revenue by 2.1% from 2019/20 with rate revenue of $8,496,012 in a total revenue budget of $17,297,279. This represents a five-year trend of 2.02%.

5.7 Minimum Rate

Council has decided to continue to impose a minimum charge in 2020/21. This financial year the minimum charge has been set at $560 and is levied on those assessments with a low capital value.

The minimum rate is levied against the whole of an allotment (including land under a separate lease of licence) and only one minimum rate is levied against two or more pieces of adjoining land (whether intercepted by a road or not) if the same owner owns them and occupied by the same occupier. The reasons for imposing a minimum rate are:

• The Council considers it appropriate that all rateable properties make a reasonable contribution to the cost of administering the Council’s activities.

• The Council considers it appropriate that all rateable properties make a contribution to the cost of creating and maintaining the physical infrastructure that supports each property.

• The minimum rate has a lesser proportionate impact on lower income earners than a fixed charge rate system.

• From a ratepayer’s perspective, anecdotal evidence appears to be in favour of a minimum rate, which is paid by those whose capital valuations are low.

5.8 Differential General Rates

The Local Government Act 1999 allows Councils to differentiate rates based on the use of the land, the locality of the land or the use and locality of the land. Definitions of the use of the land are prescribed by regulation and the current definitions are:

• Residential

• Commercial – Shop

• Commercial – Office

• Commercial – Other

• Industry – Light

• Industry – Other

• Primary Production

• Vacant Land

• Other

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%%

Financial Year

Rate Revenue Increase

Rate Increase Trend

18

In response to a comprehensive review of its rating system in 2012/13 Council decided to implement its differential rating strategy by planning zones and by land use to improve the equity in rate distribution across the community and provide Council with a more flexible rating policy that will allow it to better manage future issues as they arise. The Council is continuing with the differential general rating strategy based on:

• whether the land is within or outside of the four planning zones;

• land uses both within and outside of the planning zones;

Simply applying the equity principle would not allow for any rate differentials. However, it is clear that the benefits received by ratepayers are not uniform – and this is particularly the case in regard to rural ratepayers in our sparsely populated Council area with a number of small townships. Typically, the services not provided to some ratepayers include street lighting, waste management, kerb and guttering, street sweeping, footpaths and sealed roads. In addition, remoteness from a township may preclude the regular use of the library service and other Council provided services. The application of the benefit principle suggests that those ratepayers should pay less than ratepayers able to have access to the full range of Council services. (Note that this does not mean that a ratepayer who either chooses not to use Council services or has no current need of some Council services should pay less in rates. The reality is that the use of Council services varies at different periods in the lives of all ratepayers). In 2020/21 Council will have the following differential rates: a. 0.579 cents in the $ for properties within the townships of Bordertown, Keith, Mundulla,

Padthaway and Wolseley and for those properties within industrial and commercial zones.

b. 0.452 cents in the $ will be charged against properties that: i. Are within rural living zones, or ii. Have a land use of residential, industrial, rural living or commercial in the primary

industry zone. c. 0.3248 cents in the $ for Primary Industry land. This reduced rate relates to:

i. The land tends to be remote from many of the services provided by Council; ii. Primary production properties do not receive a waste management service; iii. Primary production properties do not have footpaths or street lighting; iv. Many primary production properties are served by gravel, rather than sealed roads.

This is the ninth year of Council’s new rating system. Council has tried to ensure that this new system is fair, equitable, flexible to changing circumstances and easy to understand. The following graphs demonstrate the proposed rate distribution within the Council area for 2020/21 compared to the 2019/20 rating year.

<-10%>-10% - <=-

7%>-7% - <=-

4%>-4% - <=-

1%>-1% -<=2%

>2% - <5%>5% -<=8%

>8%

Residential 69 1 1204 593 267 217 156

Rural 50 120 28 51 330 1100 154 111

Rural Living 7 191 7 63 45 10 12

0

200

400

600

800

1000

1200

1400

Ass

essm

ent

Co

un

t

% Change in Rates Per Assessment 19/20 to 20/21

19

5.9 Service Charges

1. Regional Landscape Levy: (N.B. This is a State Government Levy, formally the NRM Levy): a. The Council is in the South East NRM area and is required under the Landscape SA

Act 2019 to impose a separate levy against all rateable properties in the SE area in this council area.

b. The Tatiara is proposing to collect on behalf of the State Government $552,453.

The land based Regional Landscape Levy in 2020/21 will be rated the same as the NRM Levy 2019/20, being a fixed charge dependent upon the Land Use Code (LUC). Tabled below shows the calculations of the Landscape levies for the Tatiara. This compares to $547,900 in 2019/20 and in 2018/19, $524,792 in 2017/18. The levy against the use of land is indicated below.

• Residential, Vacant & Other $80.50

• Commercial $126.00

• Industrial $188.00

• Primary Production $375.00

2. Community Wastewater Management Scheme: a. The Council provides a septic tank effluent disposal system to all residential and

commercial properties in Bordertown, Keith, Mundulla and Wolseley. The full cost of operating and maintaining this service for this financial year is budgeted to be $448,774. Following an updated Asset Management Plan for the Community Wastewater Management Schemes (STED) Council has decided to maintain the annual service charge, to $350 for occupied land and $185 for vacant blocks. The charge is to cover ongoing maintenance costs plus funds to go into a reserve to fund future maintenance and future replacement of ageing infrastructure such as pumps, pits, pipes and ponds.

b. Council will charge the ratepayer based on actual usage. This will not cause an increase to residences but users with multiple showers, toilets, sinks etc, such as Hospitals, Hotels, Motels, Retirement Villages, and Schools etc will be facing multiple charges.

3. Kerbside Waste Collection:

a. In the 2020/21 financial year, Council will continue to provide a kerbside waste, recycling collection & green bin service to the towns in the Council area.

b. The cost to operate the service is beyond Council’s ability to absorb in general revenue and it would not be equitable to all ratepayers for them to do so. In meeting the majority of costs associated with the collection and disposal of waste and recyclables in the

Residential, Commercial &

Industrial Landuse in Residential

Commercial & Ind Zone, 2497, 48%

Primary Industry Landuse in Residential

Commercial & Ind Zone, 7, 0.1%Rural Living

Landuse in Rural Living Zone, 185,

4%

Commercial & Industrial Landuse in

Rural Living Zone, 10, 0.2%

Primary Industry Landuse in Rural

Living Zone, 91, 2%

Residential, Commercial &

Industrial Landuse in Primary Industry Zone, 150, 3%

Primary Industry Landuse in Primary

Industry Zone , 1846, 36%

Planning Zones & Land Use Number & Percentage of Properties

20

townships of Bordertown, Keith, Mundulla, Padthaway and Wolseley, Council will levy a service charge of $330 per service in 2020/21. The proposed charge involves the following 3-bin system: i. Town residences will be provided with a 140-litre mobile garbage bin to be used for

weekly perishable waste pick up. ii. Town businesses & residences will be provided with a 240-litre garbage bin for

fortnightly recycling pickup. iii. Town businesses will be provided with a 240-litre mobile garbage bin to be used for

weekly perishable waste pick up. iv. Town residences will be provided with a 240-litre mobile garbage bin to be used for

a fortnightly green waste pick up. 5.10 Other Sources of Revenue

• User Pay charges set by Council: These comprise charges for the Council’s fee based facilities such as the Bordertown Caravan Park, Swimming Pools, Halls, Rubbish Dumps, and Cemeteries etc.

• Statutory Charges set by State Government: These are fees and charges set by regulation and collected by the Council for regulatory functions such as assessment of development applications, dog registrations etc. Revenues generally offset the cost of the service.

• Grants and Partnerships: The Council normally seeks to attract as much grant funding as possible from other levels of government, and major projects of wider State benefit are usually jointly funded in partnership with the State government and other relevant parties.

5.11 Rate Concessions

Concession entitlements on Rates and Community Wastewater Management Schemes (CWMS) will no longer be available through Council. For questions regarding the Pensioner Concessions and to check eligibility please contact the Department for Communities and Social Inclusion Concessions Hotline directly on 1800 307 758 or go to www.sa.gov.au/ for further information.

• Other Centrelink Beneficiaries: Families SA administer other Council rate concessions that are available to a range of eligible persons receiving State and Commonwealth allowances. This includes, but is not limited to, ratepayers who are in receipt of: Austudy, Newstart, Parenting Payment, Partner Allowance, Sickness Allowance, Special Benefit, Widow Allowance, Youth Allowance, Abstudy, Commonwealth Development Employment project (CDEP) or a New Enterprise Initiative Scheme. It may also apply to ratepayers in receipt of a pension as a war widow under legislation of the United Kingdom or New Zealand and the holders of a State Concession Card issued by Children, Youth and Family Services. All enquiries should be directed to your nearest branch office of Children, Youth and Family Services.

• Concession Guide: Revenue SA provides a guide that gives an overview of the major concessions available to pensioners, Centrelink allowances, seniors and other groups in SA.

5.12 Rate Capping Rebate

A Rate Capping Rebate provides relief against what would otherwise amount to a substantial change in rates payable to a ratepayer due to rapid changes in valuation and or a change in the rating system. Council reviews the Rate Capping Rebate percentage annually, and in 2012/2013 and 2013/2014 had fixed the cap at 10%, a decrease from 20% in 2011/12. Council will apply a Rate Capping Rebate of 8% for the 2020/21 financial year, maintaining the same percentage as in 2019/20, 2018/19, 2017/18 & 2016/17 and a reduction from the 15% of the previous two years. Properties that have been purchased since July 2018 or which have had capital improvements of greater than $25,000 and the captial value has increased because of the improvements are not eligible for the Rate Capping Rebate, unless their property has changed its rate code from the previous year.

http://www.sa.gov.au/

21

5.13 Quarterly Payment of Rates

The Local Government Act 1999 provides that rates are payable in four quarterly instalments. The quarterly instalments must be approximately equal in value and a rate notice in relation to each instalment must be sent at least 30 days and no more than 60 days before payment is due. The due dates for instalments for 2018/19 will be:

• Tuesday 1 September 2020

• Tuesday 1 December 2020

• Monday 1 March 2021

• Tuesday 1 June 2021 5.14 Methods by which Rates May Be Paid

Council continues to provide a wide variety of payment methods, including:

• Internet: www.tatiara.sa.gov.au or by EFT or by Direct Credit or Direct Debit

• BPay: Biller Code 464396

• Post: PO Box 346, Bordertown SA 5268

• In Person: Payment can be made in person at the following Council Offices or Branch Offices between the hours of 8.30 am and 5.00 pm, Monday to Friday. Cheque, Credit Card and Debit card payments will be accepted. o Bordertown Council Office: 43 Woolshed Street, Bordertown SA 5268 o Keith Council Office: 34 Hender Street, Keith SA 5267 o Padthaway General Store, 15 Memorial Drive, Padthaway SA 5271

The Council has adopted a policy that where the payment of rates will cause a ratepayer demonstrable hardship, the Council is prepared to make extended payment provisions of payments by deferred arrangement. Any ratepayer who may, or is likely to experience difficulty with meeting the standard payment arrangements is invited to contact the Chief Executive Officer at the Council Office to discuss alternative arrangements. All such inquiries are treated confidentially. The Chief Executive Officer has a delegation to make alternative arrangements and it is not necessary that they be reported to Council.

5.15 Postponement of Rates for Seniors

Application may be made to Council for a postponement of the payment of any amount of rates in excess of $500, for the current or a future financial year by:

• A ratepayer who holds a current State Seniors Card issued by the State Government, (prescribed ratepayer) or the spouse of a prescribed ratepayer;

• The rates are payable on the principal place of residence;

• The land is owned by the prescribed ratepayer, or the prescribed ratepayer and his or her spouse, and no other person has an interest, as owner, in the land.

Any rates which are postponed will become due and payable:

• When the title to the land is transferred to another person; or

• Failure to comply with a condition of postponement.

Interest will accrue on the amount postponed at the prescribed rate per month until the amount is paid. Postponement is available as a right and can only be refused when the applicants have less than 50% equity in the property and their mortgage was registered prior to 25 January 2007.

5.16 Late Payment of Rates

The Local Government Act 1999 provides that Councils impose an initial penalty of 2% on any payment of rates that is received late. A payment that continues to be late is then charged a prescribed interest rate on the expiration of each month that it continues to be late. For the 2019/20 financial year this rate is 0.5252% per month.

Council issues a final notice for payment of rates when rates are overdue (i.e. unpaid by the due date.) Should rates remain unpaid more than 30 days after the due date, unless alternative payment

http://www.tatiara.sa.gov.au/

22

arrangements have been agreed with the Council, the debt may be referred to a debt collection agency. The debt collection agency charges collection fees to the ratepayer. When Council receives a payment in respect of overdue rates, it applies the money received as follows:

1. First: to satisfy any costs awarded in connection with court proceedings. 2. Second: to satisfy any interest costs. 3. Third: in payment of any fines imposed. 4. Fourth: in payment of rates, in chronological order, starting with the oldest account first.

5.17 Rebate of Rates

Rebates or remissions are a concession granted by the Council and the granting of such rebates redistributes the rate burden to other ratepayers, irrespective of whether the rebates are mandated by legislation or granted on a discretionary basis by the Council. Council has determined that rebates of rates will be granted when the applicant satisfies the requirements for mandatory rebates under Sections 159 to Section 165 of the Local Government Act 1999. Where applications for discretionary rebates are lodged under Section 166 of the Act, they will be considered under Council’s Rate Rebate Policy and will be assessed against guidelines prepared by the Local Government Financial Management Group.

• Mandatory Rebates: The Local Government Act 1999 requires Councils to rebate the rates payable for certain land uses. These include rebates of 100% for land: a. Being predominantly used for service delivery or administration by a hospital or health

centre. b. Containing a church or other building used for public worship. c. Used for a cemetery.

• Discretionary Rebates: Pursuant to section 166 of the Local Government Act 1999, the Council may in its absolute discretion grant a rebate of rates or service charges in any of the following cases: a. Where it is desirable for the purpose of securing the proper development of the area (or

part of the area). b. Where it is desirable for the purpose of assisting or supporting a business in its area. c. Where it will be conducive to the preservation of buildings or places of historic

significance. d. Where the land is being used for educational purposes. e. Where the land is being used for agricultural, horticultural or floricultural exhibitions. f. Where the land is being used for a hospital or health centre. g. Where the land is being used to provide facilities or services for children or young

persons. h. Where the land is being used to provide accommodation for the aged or disabled. i. Where the land is being used for a residential aged care facility that is approved for

Commonwealth funding under the Aged Care Act 1987 (Commonwealth) or a day therapy centre.

j. Where the land is being used by an organisation, which, in the opinion of the Council, provides a benefit or service to the local community.

k. Where the rebate relates to common property or land vested in a community corporation under the Community Titles Trust over which the public has a free and unrestricted right of access and enjoyment.

l. Where the rebate is considered by the Council to be appropriate to provide relief against what would otherwise amount to a substantial change in rates payable due to a change in the basis of valuation used for the purposes of rating, raid changes in valuations, or anomalies in valuations.

23

5.18 Sale of Land for Non Payment of Rates

The Local Government Act 1999 provides that a Council may sell any property where the rates in arrears for three years or more. The Council is required to notify the owner of the land of: a. Its intention to sell the land. b. Details of the outstanding amounts. c. Council’s intention to sell the land if payment of the outstanding amount is not received within

one month.

Except in extraordinary circumstances, Council enforces the sale of land for arrears of rates. 5.19 Public Availability of Annual Business Plan

The public may inspect a copy of this Policy Document, without charge, at the offices of the Council.

24

Section 6 – Impact on Council’s Financial Position

INCOME STATEMENT

ACTUAL 2018/19

$

2019/20 BUDGET

$

2020/21 BUDGET

$

INCOME

10,147,000 Rates 10,441,817 10,660,245

126,000 Statutory Charges 119,895 114,000

453,000 User Charges 410,020 579,640

4,657,000 Grants Subsidies and Contributions 4,436,804 5,139,990

272,000 Investment Income 284,720 203,000

341,000 Reimbursements 162,879 300,354

392,000 Other 397,651 300,050

-

Share of profit - joint ventures and associates - -

16,388,000 TOTAL REVENUES 16,253,786 17,297,279

EXPENSES

4,318,000 Wages and Salaries 4,420,243 4,663,340

5,659,000 Materials, contracts & other expenses 7,465,511 7,323,107

95,000 Finance Costs 85,394 76,307

5,247,000

Depreciation, amortisation & impairment 5,247,000 5,247,000

-

Share of loss - joint ventures & associates - -

15,319,000 Total Expenses 17,218,148 17,309,754

OPERATING SURPLUS/(DEFICIT) 1,069,000 BEFORE CAPITAL AMOUNTS (964,362) (12,475)

(105,000)

Net gain (loss) on disposal or revaluation of assets - -

387,000

Amounts specifically for new or upgraded assets 429,545 1,612,000

-

Physical resources received free of charge - -

1,351,000 NET SURPLUS/(DEFICIT) (534,817) 1,599,525

Other Comprehensive Income 2,547,000 Changes in revaluation Surplus - -

3,898,000 NET SURPLUS/(DEFICIT) (534,817) 1,599,525

25

CASH FLOW STATEMENT

ACTUAL 2018/19

$

2019/20 BUDGET

$

2020/21 BUDGET

$

Inflows Inflows

(Outflows) (Outflows)

CASHFLOWS FROM OPERATING ACTIVITIES

RECEIPTS 16,203,000 Operating Receipts 15,969,066 17,094,279

273,000 Investment Receipts 284,720 203,000

PAYMENTS

(9,676,000)

Operating payments to suppliers & employees (11,885,754) (11,986,447)

(99,000) Finance Payments (85,394) (76,307)

6,701,000

Net Cash provided by (or used in) Operating Activities 4,282,638 5,234,525

CASH FLOWS FROM INVESTING ACTIVITIES

RECEIPTS

387,000

Grants specifically for new or upgraded assets 429,545 1,612,000

327,000 Sale of Assets 110,091 -

29,000

Repayments of loans by community groups

PAYMENTS

-

Loans made to community groups

(5,093,000) Capital Expenditure (5,389,746) (6,735,000)

(4,350,000)

Net Cash provided by (or used in) Investing Activities (4,850,110) (5,123,000)

CASH FLOWS FROM FINANCING ACTIVITIES

RECEIPTS - Proceeds from Borrowings - -

PAYMENTS (230,000) Repayment of Borrowings (163,331) (93,526)

(230,000)

NET CASH USED IN FINANCING ACTIVITIES (163,331) (93,526)

2,121,000

NET INCREASE (DECREASE) IN CASH HELD (730,803) 17,999

12,709,000 CASH AT BEGINNING OF YEAR 14,830,000 14,099,197

14,830,000 CASH AT END OF YEAR 14,099,197 14,117,196

26

BALANCE SHEET

ACTUAL 2018/19

$

2019/20 BUDGET

$

2020/21 BUDGET

$

ASSETS

CURRENT ASSETS $ $

14,830,000 Cash and cash equivalents 14,099,197 14,117,196

733,000 Trade & other receivables 733,000 733,000

1,208,000 Inventories 1,208,000 1,208,000

- Other Financial Assets - -

16,771,000 16,040,197 16,058,196

- Non-Current Assets held for Sale - -

16,771,000 TOTAL CURRENT ASSETS 16,040,197 16,058,196

NON-CURRENT ASSETS 53,000 Financial Assets 53,000 53,000

-

Equity accounted investments in Council businesses - -

- Investment Property - -

190,595,000

Infrastructure, Property, Plant & Equipment 190,627,655 192,115,655

- Other Non-current Assets - -

190,648,000 TOTAL NON-CURRENT ASSETS 190,680,655 192,168,655

207,419,000 TOTAL ASSETS 206,720,852 208,226,851

LIABILITIES

CURRENT LIABILITIES 1,154,000 Trade & Other Payables 1,154,000 1,154,000

124,000 Borrowings 124,000 124,000

1,049,000 Short-term Provisions 1,049,000 1,049,000

- Other Current Liabilities - -

2,327,000 2,327,000 2,327,000

-

Liabilities relating to Non-current Assets held for Sale - -

2,327,000 TOTAL CURRENT LIABILITIES 2,327,000 2,327,000

NON-CURRENT LIABILITIES - Trade & Other Payables - -

853,000 Long-term Borrowings 689,669 596,143

84,000 Long-term Provisions 84,000 84,000

- Other Non-current Liabilities - -

937,000

TOTAL NON-CURRENT LIABILITIES 773,669 680,143

3,264,000 TOTAL LIABILITIES 3,100,669 3,007,143

204,155,000 NET ASSETS 203,620,183 205,219,708

EQUITY 835,000 Accumulated Surplus 288,143 2,448,460

192,039,000 Asset Revaluation 192,039,000 192,039,000

11,281,000 Other Reserves 11,293,040 10,732,248

204,155,000 TOTAL EQUITY 203,620,183 205,219,708

27

STATEMENT OF CHANGES IN EQUITY

ACTUAL 2018/19

$

2019/20 BUDGET

$

2020/21 BUDGET

$

ACCUMULATED SURPLUS 1,039,000 Balance at end of previous reporting period (51,926) 288,143

1,351,000 Net Result for Year (534,817) 1,599,525

193,000 Transfer From Reserves 1,516,581 1,094,655

(1,748,000) Transfer To Reserves (641,695) (533,863)

835,000 BALANCE AT END OF PERIOD 288,143 2,448,460

ASSET REVALUATION RESERVE 189,492,000 Balance at end of previous reporting period 192,039,000 192,039,000

2,547,000

Gain on revaluation of infrastructure, property, plant & equipment - -

-

Transfer to Accumulated Surplus on sale of infrastructure, property, plant & equipment - -

192,039,000 BALANCE AT END OF PERIOD 192,039,000 192,039,000

Tatiara United Football Grant - Balance at end of previous reporting period - -

- Transfer to reserve from accumulated surplus - -

- Transfer from reserve to accumulated surplus - -

- BALANCE AT END OF PERIOD - -

Carry Forward Funds Reserve - Balance at end of previous reporting period 886,926 -

Transfer to reserve from accumulated surplus - -

- Transfer from reserve to accumulated surplus (886,926) -

- BALANCE AT END OF PERIOD - -

Keith Community Library 28,000 Balance at end of previous reporting period 29,000 29,000

1,000 Transfer to reserve from accumulated surplus - -

- Transfer from reserve to accumulated surplus 29,000 BALANCE AT END OF PERIOD 29,000 29,000

Long Service Leave Reserve 349,000 Balance at end of previous reporting period 356,000 356,000



356,000 BALANCE AT END OF PERIOD 356,000 356,000

Plant Replacement Reserve 406,000 Balance at end of previous reporting period 353,000 353,000


(53,000) Transfer from reserve to accumulated surplus - -


Clayton Farm Insurance 82,000 Balance at end of previous reporting period 69,000 69,000


(13,000) Transfer from reserve to accumulated surplus - (5,000)


28

STATEMENT OF CHANGES IN EQUITY CONT.

ACTUAL 2018/19

$

2019/20 BUDGET

$

2020/21 BUDGET

$

CED Maintenance Reserve 6,680,000 Balance at end of previous reporting period 7,320,000 7,961,695

640,000 Transfer to reserve from accumulated surplus 641,695 533,863

- Transfer from reserve to accumulated surplus 7,320,000 BALANCE AT END OF PERIOD 7,961,695 8,495,558

Reserve Future Road Renewal 783,000 Balance at end of previous reporting period 1,871,000 1,291,345

1,088,000 Transfer to reserve from accumulated surplus - -

- Transfer from reserve to accumulated surplus (579,655) (489,655)

1,871,000 BALANCE AT END OF PERIOD 1,291,345 801,690

Reserve Land Development 731,000 Balance at end of previous reporting period 604,000 604,000


(127,000) Transfer from reserve to accumulated surplus (600,000)


Reserve Tatiara Creek 45,000 Balance at end of previous reporting period 46,000 46,000

1,000 Transfer to reserve from accumulated surplus - Transfer from reserve to accumulated surplus - -


Rubble Rehab 307,000 Balance at end of previous reporting period 312,000 312,000




Reserve Open Space 61,000 Balance at end of previous reporting period 62,000 12,000

1,000 Transfer to reserve from accumulated surplus - Transfer from reserve to accumulated surplus (50,000) -


Reserve Unplanned Spend 254,000 Balance at end of previous reporting period 259,000 259,000


- Transfer from reserve to accumulated surplus 259,000 BALANCE AT END OF PERIOD 259,000 259,000

204,155,000

TOTAL EQUITY AT END OF REPORTING PERIOD 203,620,183 205,219,708

29

UNIFORM PRESENTATION OF FINANCES

ACTUAL 2018/19

$

2019/20 BUDGET

$

2020/21 BUDGET

$

16,388,000 Operating Revenues 16,253,786 17,297,279

(15,319,000) less Operating Expenses (17,218,148) (17,309,754)

1,069,000

Operating Surplus / (Deficit) before Capital Amounts (964,362) (12,475)

Less Net Outlays in Existing Assets

3,616,000

Capital Expenditure on renewal and replacement of Existing Assets 3,336,576 3,105,000

(5,247,000)

less Depreciation, Amortisation and Impairment (5,247,000) (5,247,000)

(167,000)

less Proceeds from Sale of Replaced Assets (110,091) -

(1,798,000) (2,020,515) (2,142,000)

Less Net Outlays on New and Upgraded Assets

1,477,000

Capital Expenditure on New and Upgraded Assets 2,053,170 3,630,000

(387,000)

less Amounts received specifically for New and Upgraded Assets (429,545) (1,612,000)

(160,000)

less Proceeds from Sale of Surplus Assets

930,000 1,623,625 2,018,000

1,937,000

Net Lending / (Borrowing) for Financial Year (567,472) 111,525

1,069,000 Operating Surplus (Adopted target balance to surplus) (964,362) (12,475)

Operating Surplus Ratio (Adopted target 0 to +%)

7% Operating Surplus (6%) (0%)

Total Operating Income

(12,352,000) Net Financial Liabilities (Adopted target 65%Op Rev - $7,417,334) (11,784,528) (11,896,053)

(75.37%) Net Financial Liabilities (72.50%) (68.77%)

Total Operating Income

Interest Cover Ratio (Adopted target 0 - 5.5%)

(1.10%) Net Interest Expense (1.25%) (0.74%)

Total Operating Revenue

Asset Renewal Funding Ratio (Adopted target 90 - 110%)

117.00% Net Asset Renewals 100.17% 96.39%

30

In addition to the objectives of the Strategic Management Plan, the long-term financial position is monitored using a set of financial sustainability indicators developed by the Local Government. These indicators are: 1. Operating Surplus/Deficit (before capital Revenues) 2. Operating Surplus Ratio 3. Net Financial Liabilities 4. Net Financial Liabilities Ratio 5. Interest Cover Ratio 6. Asset Sustainability Ratio 206 These financial indicators have been calculated in accordance with Information Paper 9 – Local Government Financial Indicators prepared as part of the LGA Financial Sustainability Program for the Local Government Association of South Australia. Financial Indicator 1: Operating Surplus / Deficit

Financial Indicator 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 5 Year

Actual Actual Actual Actual Budget Budget Average

Operating Surplus/(Deficit) -1,004,000 2,089,000 643,000 1,069,000 -888,527 -12,475 580,000

Operating Surplus / (Deficit) measures the extent to which operating revenue is or is not sufficient to meet all of the costs of providing Council services, which includes depreciation. When an operating deficit exists, today’s ratepayers are not meeting some costs being incurred in the current year. When an operating surplus is achieved, the amount of the surplus is available for capital expenditure over and above the level of depreciation expenses for the year, without the need to increase the level of Council’s net financial liabilities. When such capital expenditure is not required, the amount of the operating surplus leads to a reduction in the level of net financial liabilities. The following graph shows Council’s Operating Statement since 1998/99, showing a gradual improvement over time in the Operating Result before capital revenue. A deficit Budget is estimated for the 2020/21 Budget.

-4,000,000

-3,000,000

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

$'0

00

Financial Year

Operating Surplus/(Deficit) - $'000

Operating Surplus (Deficit)Trend

31

Financial Indicator 2: Operating Surplus / Deficit Ratio



Operating Surplus Ratio -7% 12% 4% 8.4% -8% 0% 3%

Operating Surplus Ratio expresses the Operating Surplus / (Deficit) as a percentage of general and other rates, net of the NRM Levy. When an operating deficit exists, this measure indicates the percentage increase needed in rate revenue to achieve a break-even operating result. Equally, decreasing operating expenses also could target a break-even operating result. From the information presented it can be seen that Council is planning for an Operating Ratio of -0% in 2020/21, indicating that the operating deficit is equivalent to 0% of rate revenue.

Financial Indicator 3: Net Financial Liabilities



Net Financial Liabilities

-5,086,000 -8,188,000 -10,595,000 -7,197,771 -9,346,755 -11,896,053 -10,475,562

Net Financial Liabilities is a financial position measure and equals total liabilities less financial assets (being cash, investments, loans to community groups, receivables, prepayments, but excluding equity-type investments). Net Financial Liabilities is the key indicator of a Council’s indebtedness to other sectors of the economy. It is a more comprehensive measure than Net Debt as it includes, for example, creditors and provisions for employee entitlements. The amount of Net Borrowing in any one-year increases the level of Net Financial Liabilities in the year by that amount, and indicates that a Council has to incur liabilities or liquidate financial assets to finance its overall budget. Conversely, the amount of Net Lending decreases the level of Net Financial Liabilities, and indicates that a Council has to purchase financial assets or repay liabilities in order to use surplus funds in that year. When an ongoing negative Net Financial Liabilities position occurs, it implies that a Council has financial assets to meet its current financial commitments.

-90%

-70%

-50%

-30%

-10%

10%

30%

%

Financial Year

Operating Surplus Ratio (%)

Operating Surplus Ratio Trend Target

32

Financial Indicator 4: Net Financial Liabilities Ratio



Net Financial Liabilities Ratio -38.0% -48.0% -67.0% -75.4% -58.9% -68.8% -63.6%

Net Financial Liabilities Ratio expresses Net Financial Liabilities as a percentage of Total Operating Revenue. This measure equates the outstanding level of Council’s financial obligations against the level of one year’s operating revenue. The measure also indicates the capacity of Council to meet its financial obligations from revenue streams. When the ratio is falling, it indicates that Council’s capacity to meet its financial obligations from revenue streams is strengthening. Conversely, where the ratio is increasing, it indicates that Council’s capacity to meet its financial obligations is deteriorating. From the table, it can be determined that in 2020/21 Council’s projected ratio is -68.6%, which tells us that Council’s Net Financial Liabilities are funded by both its operational income and internal borrowings, and implies that Council is using its financial reserves to meet its financial commitments. Over the 5 year period, from 2016/17 to 2020/21, Council will have a net financial liabilities ratio average of around -63.6%.

(15,000,000)

(10,000,000)

(5,000,000)

-

5,000,000

10,000,000

15,000,000$

Financial Year

Net Financial Liabilities ($)

Net Financial Liabilities Trend Ceiling

-100.0%-80.0%-60.0%-40.0%-20.0%

0.0%20.0%40.0%60.0%80.0%

100.0%

%

Financial Year

Net Financial Liabilities Ratio (%)

Net Financial Liabilities Ratio Trend Ceiling

33

Financial Indicator 5: Net Interest Cover Ratio



Net Interest Cover Ratio -0.54% -0.35% -0.7% -1.1% -0.99% -0.74% -0.8%

Net Interest Cover Ratio expresses Net Interest Expenses as a percentage of Total Operating Revenue, or how much of Council’s operating revenue generated is used to pay interest on loans. It indicates the extent to which a Council’s operating revenues are committed to interest expenses, however, does not take into account the component of interest expenses that is funded directly under a self-supporting loan, as for example occurs with the loans for Community Wastewater Management Schemes. The current ratio of -0.74% of income used to pay interest on loans is low. In terms of total loan principal payable and interest on loans payable on an annual basis as opposed to rate revenue, Council’s targeted ceiling is approximately 5.5%, which means that Council can in theory raise further debt to fund capital costs without impacting on the budget substantially.

Financial Indicator 6: Asset Sustainability Ratio



Asset Sustainability Ratio 112% 105% 72% 117% 104% 96% 98.9%

This ratio indicates the extent to which existing non-financial assets are being renewed and replaced, compared with the asset renewal and replacement expenditure identified as warranted in Council’s infrastructure and asset management plan (I&AMP). It is calculated by measuring capital expenditure on renewal or replacement of assets for a period, divided by the optimal level of such expenditure proposed in our I&AMP. The target for this ratio should display the capital outlays on renewing/replacing assets are greater than 90% but less than 110% of the level proposed in in the Infrastructure and Asset Management Plan (I&AMP) Note: Under the LGA Financial Sustainability Information Paper No. 9, Revised in May 2015 the name of the Asset Sustainability Ratio might change in the future to “Asset Renewal Funding

-2.00%-1.00%0.00%1.00%2.00%3.00%4.00%5.00%6.00%

%

Financial Year

Interest Cover Ratio (%)

Interest Cover Ratio Trend Ceiling

34

Ratio”. Any such change would need to be reflected in a corresponding change to the Regulations.

112%

72%

104%

0%

20%

40%

60%

80%

100%

120%

140%

%

Financial Year

Asset Sustainability Ratio (%)

Asset Renewal Ratio Trend Target Ceiling

35

Appendix 1 – Objectives and Activities - 2020-21 This Annual Business Plan includes a summary of our long-term objectives (as set out in our strategic management plans) and an outline of our objectives for the financial year and the activities that we intend to undertake to achieve those objectives. These objectives and activities relevant to the 2020/21 financial year are detailed in the table below.

STRATEGIC GOAL 1: A Safe and Connected Community

Objective: 1.1 Provide innovative and effective community services.

No. Strategy No. Activity

1.1.1. Build community capacity & participation in community services, culture & recreation.

1.1.1.1.

Acknowledge the contribution made by community members through their individual areas of excellence, through appropriate avenues such as Australia Day Awards, Volunteer of the Year, ANZAC Day celebrations & other events.

1.1.2. Create a safe community environment.

1.1.2.1.

Promote & support recreational & cultural activities that encourage community participation (e.g. libraries, cinemas, men’s sheds, walking trails, recreation & sporting venues).

1.1.2.2. Encourage & facilitate, where appropriate, a range of flexible, diverse & affordable housing options (e.g. retirement villages & independent living units).

1.1.3. Contribute to building a vibrant & diverse community.

1.1.3.1.

Further expand the opportunities for members of multi-cultural communities to gather together through Council programs to support their sense of belonging & participation.

1.1.3.2. Create opportunities for all regional stakeholders to contribute to the district's promotion, growth & enhancement as part of community engagement.

Objective: 1.2. Provide community leadership through accessible, open & consultative government.


1.2.1.

Health & social wellbeing services in the Tatiara meets regional community needs.

1.2.1.1. Implement the recommendations / actions of Council’s Regional Health Plan.

1.2.1.2. Facilitate the development of health services by building a close working relationship with the region’s hospitals, medical centres & health services.

1.2.1.3. Advocate support for a Health Hub in Bordertown and Keith.

1.2.2.

Develop & implement a range of communication strategies to strengthen relationships between Council & community groups.

1.2.2.1. Identify & implement communication strategies (e.g. online social media, group presentations etc.) that improve engagement with all segments of our community (e.g. youth, aged, migrant communities).

Objective: 1.3.Develop and support sport, recreation and community activities to promote healthy lifestyles and community wellbeing.


1.3.1.

Promote community health and well-being through the provision of recreation space, facilities & programs.

1.3.1.1. Optimise recreation opportunities by co-locating, where viable, sports facilities with community / family recreation places / space.

1.3.2. Promote the Region’s library services as an information resource that is accessible & responsive to community need.

1.3.2.1. Implement the Tatiara Libraries Forward Plan to establish a cooperative & collaborative relationship between Bordertown Library & Keith Community Library.

1.3.2.2. Identify opportunities to engage with the community, funding bodies & other agencies to support library & community development programs, activities & services.

1.3.3 Collaborate with Country Arts SA to deliver a Regional Arts and Culture Plan.

1.3.2.3 Collaborate with Country Arts SA and others to provide an engaging arts and cultural program.

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STRATEGIC GOAL 2: Infrastructure & Assets

Objective: 2.1 Plan for & provide infrastructure appropriate to the community’s needs.


2.1.1 Prudently review & manage Council’s AMPs with its LTFP.

2.1.1.1.

Complete the development of Asset Management Plans for Council’s core asset groups to ensure there are sufficient funds in the long term to renew infrastructure that is vital to Council’s service delivery.

2.1.1.2. Review & update Asset Management Plans (AMPs) on a regular basis & define condition, service & performance standards for each asset class.

2.1.1.3. Deliver works to develop & maintain Council’s physical assets for long-term sustainability, amenity & safety.

2.1.1.4. Continue to look for opportunities to rationalise & dispose of surplus assets in order to reduce long-term operating & capital costs.

2.1.2 Improve the safety of the community.

2.1.2.1 Review & improve lighting provided to public facilities, roads & open spaces to improve public safety.

2.1.2.2. Provide & promote walking & cycling trails for the health & wellbeing for recreation & commuter use.

2.1.3 Improve telecommunication

for both residents & local business..

2.1.3.1.

To work in conjunction with state & federal government departments to provide internet (mobile BB) & mobile phone coverage to black spots within the district.

2.1.4.

Maintain & manage Council owned & managed land to improve the amenity & functionality of the area.

2.1.4.1.

Plan & develop the Old Shell Depot in Bordertown & the Railway lands in Keith for "tourist" parking of larger vehicles and to "beautify" the area.

2.1.4.2. Develop and improve amenity of parks and public spaces.

STRATEGIC GOAL 3 - Economic Development

Objective: 3.1 Create an environment which encourages new & existing businesses to achieve their aspirations for growth.


3.1.1.

To have a strong & prosperous economy built on diversifying our established industries, businesses & enterprises & attracting new industries & investors.

3.1.1.1. Implement the Tatiara Economic Development and Tourism Strategy 2020-2024.

3.1.1.2. Foster economic development & tourism by partnering with other organisations and government bodies (like the RDA) to seek out & attract potential new industries.

3.1.1.3. Work in partnership with the business community in the development & promotion of business growth & employment opportunities, including Council visiting and regularly engaging with Tatiara businesses.

3.1.1.4. Advocate to Government, in conjunction with the RDA and industry, to ensure that the supply of energy to the region caters for current & future demand levels (e.g. cold storage, bio-energy).

3.1.1.5. Advocate for appropriate Information Communication Technology (ICT) infrastructure to support industry, business & the community. (e.g. mobile phone coverage).

3.1.1.6. Coordinate long term strategic land use planning & infrastructure that assists economic development across the Tatiara with particular emphasis on the retail & commercial precincts, such as the Bordertown & Keith Industrial Estates, & the development of new homes on surplus blocks.

Objective: 3.2 Implement effective strategies to grow & retain the region's population.


3.2.1. Develop strategy to attract & retain people in the Tatiara.

3.2.1.1

Facilitate the provision of transport services for the aged & young families by a community bus system, encouraging local operators to provide a bus service & lobbying State/Federal Governments for transport services.

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Objective: 3.3 To support and encourage a sustainable, innovative and resilient tourism sector.


3.3.1. To have a vibrant & growing tourism industry.

3.3.1.1. Implement the Tatiara Economic Development and Tourism Strategy 2020-2024

3.3.1.2. Support & work with local & regional tourism groups, including the Tatiara Business Association, Limestone Coast Local Government Association and Wimmera Mallee Tourism.

3.3.1.3. Support, facilitate & promote major & unique events to regional & wider audiences.

3.3.1.4. Encourage the community to be involved in preserving & promoting the history of their town & the region.

STRATEGIC GOAL 4: Natural Environment & Sustainable Living

Objective: 4.1 Protect & enhance the natural landscape, urban treescapes & waterways.


4.1.1. Support a clean, green & healthy environment.

4.1.1.1.

Promote sustainability & conservation of Council’s bushland & waterway reserves through information, education & public events (e.g. Clean Up Australia Day).

4.1.1.2. Investigate projects to preserve & enhance areas of remnant vegetation or significant native flora & fauna on public & private land.

4.1.1.3. Support community based climate change & sustainability initiatives.

Objective: 4.2 Support our community to experience & appreciate a healthy, diverse & exciting natural environment.


4.2.1.

Maintain Council’s commitment to the Coorong & Tatiara Local Action Plan (LAP) Committee & staff.

4.2.1.1. To achieve a better informed community on key NRM issues and actions to help protect & enhance biodiversity across our region.

Objective: 4.3 Establish Council leadership as a sustainability & environment steward.


4.3.1.

To reduce impact of Council’s activities & provide leadership in sustainability by demonstrating best practice.

4.3.1.1.

Assess the potential impacts of Climate Change in relation to Council operations & services & implement adaption strategies.

4.3.1.2. Investigate the conversion of street lights to energy efficient lights where appropriate.

Objective: 4.4 Protect & enhance the natural landscape, urban treescapes & waterways.


4.4.1.

Ensure waste services are managed according to a long-term waste management strategy which is consistent with waste minimisation principles.

4.4.1.1.

Encourage & promote waste reduction, recycling & reuse through community education & public awareness programs.

4.4.1.2. Continue to investigate cost effective ways to manage waste & recycling within the district.

STRATEGIC GOAL 5: Governance & Leadership

Objective: 5.1 Provide community leadership through accessible, open & consultative government.


5.1.1. Provide accountable, open, & transparent communication with the community.

5.1.1.1.

Implement Council’s Community Engagement Framework which establishes mechanisms to inform, consult and involve the community in Council business & decision making.

5.1.1.2. Provide information to the community via newsletters, website, local media & other avenues.

Objective: 5.2 Maintain a clear & effective short, medium & long term planning framework.


38

5.2.1. Council's operations are effective, efficient & customer focused.

5.2.1.1. Pursue the integration & management of information, communication & technology systems.

5.2.1.2. Continue to undertake service review processes to ensure efficient & effective service delivery.

5.2.2. To continuously improve the health & safety of people within our workplace.

5.2.2.1.

Implement & monitor health, safety & injury management services to provide a safe working environment for all workers & volunteers.

5.2.2.2. Council's WH&S performance is at or above the regional average.

5.2.3. Manage risk to the Council.

5.2.3.1.

Update the Risk Management Framework, which addresses workplace health & safety, emergency management, business continuity, financial management, public liability & legislative accountability.

5.2.3.2. Undertake an annual legislative compliance audit, commencing with key areas of risk identified under the Risk Management Framework.

5.2.3.3. Foster improved organisational probity, practices & risk management through effective operation of Council’s Audit Committee.

5.2.3.4. Council's risk management performance is at or above the regional Local Government average.

Objective: 5.3 Ensure that Council’s plans and budgets are both responsible and sustainable.


5.3.1. To implement prudent & professional financial & operational management.

5.3.1.1.

Maintain & implement prudent financial policies & practices to ensure long term financial sustainability, including the provision of quality internal control & audit procedures.

5.3.1.2. Review the financial assumptions & planning parameters applied to the Long Term Financial Plan to achieve long term financial sustainability.

5.3.1.3. Develop & implement a comprehensive rating strategy that balances the needs of Council with community interest.

5.3.1.4. Improve service efficiency & effectiveness through regular service reviews & process improvements.

5.3.2. Provide leadership & advocacy to improve the financial position of the Tatiara Council.

5.3.2.1.

Advocating for legislative change including constitutional recognition for local government & improved funding models to lessen the reliance on rates as an income stream.

39

Appendix 2 – Rate Rebate Policy

TATIARA DISTRICT COUNCIL

RATE REBATE POLICY 2020/21

40

Policy Statement

It is the policy of Tatiara District Council that a rebate of rates in respect of any rateable land in the Council area will be available only when the applicant satisfies the requirements under the Local Government Act 1999 and, where appropriate, the requirements of this Policy.

Introduction

1. The Local Government Act 1999 (“the Act”) sets out at Chapter 10, Division 5 (Sections 159 to 166) those provisions applicable to the Council granting a rebate of rates to persons or bodies.

2. The Council has decided to adopt a Policy to assist it in its decision-making functions relative to the operation of the rate rebate provisions contained in the Act.

3. This Policy is intended to provide guidance to the community as to the grounds upon which a person or body is, or may be entitled to receive a rebate of rates and the matters that the Council will take into account in deciding an application for a rebate.

4. In accordance with the rebate provisions contained in the Act, this Policy sets out the type of use in respect of land which the Council must grant a rebate of rates and the amount that rebate must be, and those types of land use where the Council has a discretion to grant a rebate of rates.

Local Government Act 1999

1. Section 159(3) of the Act provides that the Council may grant a rebate of rates under the Act if it is satisfied that it is appropriate to do so.

2. The Act provides for a mandatory rebate of rates in specified cases and the amount of that mandatory rebate (see Mandatory Rebates Clause below).

3. The Act also provides that where the Council must grant a rebate of rates under the Act, and the amount of that rebate if fixed by the Act at less than 100%, the Council may increase the amount of the rebate.

4. The Act provides, at Section 166 for the Council to provide a discretionary rebate of rates in the cases set out in that Section.

Mandatory Rebates 1. The Council must grant a rebate in the amount specified in respect of those land uses, which the Act provides,

will be granted a rebate. 2. Rates on the following land will be rebated at 100%:

o Health Services - Land being predominantly used for service delivery or administration by a hospital or health centre incorporated under the South Australia Health Commission Act 1976;

o Religious Purposes - Land containing a church or other building used for public worship (and any

grounds), or land solely used for religious purposes;

o Public Cemeteries - Land being used for the purposes of a public cemetery;

o Royal Zoological Society of SA - Land (other than land used as domestic premises) owned by, or under the care, control and management of, the Royal Zoological Society of South Australia Incorporated.

41

2. Rates on the following land will be rebated at 75%:

a. Community Services - Land being predominantly used for service delivery and administration by a community services organisation. A “community services organisation” is defined in the Act as a body that:

o Is incorporated on a not for profit basis for the benefit of the public; and o Provides community services without charge or for a charge that is below the cost to the body of

providing the services; and o Does not restrict its services to persons who are members of the body.

It is necessary for a community services organisation to satisfy all of the above criteria to be entitled to the mandatory 75% rebate. The Act further provides that eligibility for a rebate by a community services organisation is subject to it providing one or more of the following community services –

i. Emergency accommodation ii. Food or clothing for disadvantaged persons (i.e., persons who are disadvantaged by reason of

poverty, illness, frailty, or mental, intellectual or physical disability); iii. Supported accommodation (i.e., residential care facilities in receipt of Commonwealth funding or

accommodation for persons with mental health, intellectual, physical or other difficulties who require support in order to live an independent life);

iv. Essential services, or employment support, for persons with mental health disabilities, or with

intellectual or physical disabilities; v. Legal services for disadvantaged persons; vi. Drug or alcohol rehabilitation services; or vii. The conduct of research into, or the provision of community education about, diseases or

illnesses, or the provision of palliative care to persons who suffer from diseases or illnesses.

Educational Purposes

i. Land occupied by a government school under a lease or licence and being used for educational purposes; or

ii. Land occupied by a non-government school registered under Part 5 of the Education Act 1972

and being used for educational purposes; or iii. Land being used by a University or University College to provide accommodation and other forms

of support for students on a not for profit basis. 3. Where the Council is satisfied from its own records or from other sources that a person or body meets the necessary

criteria for a mandatory 100% or 75% rebate, the Council will grant the rebate of its own initiative. Where the Council is not so satisfied it will require the person or body to apply for the rebate in accordance with the Applications Clause of the Rate Rebate Policy.

4. Where a person or body is entitled to a rebate of 75% the Council may, pursuant to Section 159(4) of the Act, increase

the rebate up to a further 25%. The Council may grant the further 25% rebate upon application or on its own initiative. In either case the Council will take into account those matters set out within the Applications Clause of the Rate Rebate Policy and may take into account any or all of those matters set out within that Clause.

42

5. Where an application is made to the Council for a rebate of up to a further 25% the application will be made in

accordance with the Applications Clause of this Policy and the Council will provide written notice to the applicant of its determination of that application.

Discretionary Rebates 1. The Council may in its absolute discretion grant a rebate of rates or service charges in any of the following cases

pursuant to Section 166 of the Act -

(a) Where it is desirable for the purpose of securing the proper development of the area (or a part of the area);

(b) Where it is desirable for the purpose of assisting or supporting a business in its area;

(c) Where it will be conducive to the preservation of buildings or places of historic significance;

(d) Where the land is being used for educational purposes;

(e) Where the land is being used for agricultural, horticultural or floricultural exhibitions;

(f) Where the land is being used for a hospital or health centre;

(g) Where the land is being used to provide facilities or services for children or young persons;

(h) Where the land is being used to provide accommodation for the aged or disabled;

(i) Where the land is being used for a residential aged care facility that is approved for Commonwealth funding under the Aged Care Act 1987 (Commonwealth) or a day therapy centre;

(j) Where the land is being used by an organisation which, in the opinion of the Council, provides a benefit or service to the local community;

(k) Where the rebate relates to common property or land vested in a community corporation under the Community Titles Act 1996 over which the public has a free and unrestricted right of access and enjoyment; and

(l) Where the rebate is considered by the Council to be appropriate to provide relief against what would otherwise amount to a substantial change in rates payable due to a change in the basis of valuation used for the purposes of rating, rapid changes in valuations, or anomalies in valuations.

2. The Council may grant a rebate of rates up to and including 100% of the relevant rates or service charges. The Council

may grant a rebate for a period exceeding one year, but not exceeding 10 years in respect of those cases identified in the Discretionary Rebates Clause above.

3. The Council has an absolute discretion –

(a) To grant a rebate of rates or service charges in the above cases; and (b) To determine the amount of any such rebate.

4. Persons who or bodies, which seek a discretionary rebate, will be required to submit an application form to the

Council and provide to the Council such information as stipulated on the application form and any other information that the Council may reasonably require.

43

5. Council for the purpose of providing relief against what would otherwise amount to a substantial change in rates payable by a ratepayer due to a rapid change in valuations, will provide a rebate on the general rate in 2017/18 on any one assessment so that the maximum general rate paid is not greater than 15% more than applicable in the previous year. The rebate will not apply where -

(a) The property has been acquired by the ratepayer after 30 June 2018. (b) The increase in the general rate payable is due in whole or in part to an increase in the valuation of the

property attributable to improvements made to it valued in excess of $25,000. (c) The increase in the general rate payable is due in whole or in part to an increase in the valuation of the

property attributable to a change in the zoning of the land under the Development Act 1993.

The rebate will be automatically calculated by Council and recorded on the 2018/19 rate notice, written application for the rebate will not be required. Applications 1. The Council will inform the community of the provisions for rate rebate under the Local Government Act by the

inclusion of suitable details in the Rating Policy Summary distributed with the annual rate notice. 2. Persons or bodies who seek a rebate of rates (and/or service charges) either –

(a) Pursuant to Section 159(4) of the Act and Mandatory Clause of this Policy; or (b) Pursuant to Section 166 of the Act and Discretionary Clause of this Policy, (c) Must make written application to the Council pursuant to Section 159(1) of the Act in the manner and form

determined by the Council and supplying such information as the Council may reasonably require. 3. Application forms may be obtained from the Council office located at 43 Woolshed Street, Bordertown. 4. The Council will take into account, in accordance with Section 159(5) of the Act, the following matters -

(a) The nature and extent of Council services provided in respect of the land for which the rebate is sought in

comparison to similar services provided elsewhere in the Council’s area; (b) The community need that is being met by activities carried out on the land for which the rebate is sought; and (c) The extent to which activities carried out on the land for which the rebate is sought provides assistance or

relief to disadvantaged persons.

5. The Council may take into account other matters considered relevant by the Council including, but not limited to, the following –

(a) Why there is a need for financial assistance through a rebate; (b) The level of rebate (percentage and dollar amount) being sought and why it is appropriate; (c) The extent of financial assistance, if any, being provided to the applicant and/or in respect of the land by

Commonwealth or State agencies; (d) Whether the applicant has made/intends to make applications to another Council; (e) Whether, and if so to what extent, the applicant is or will be providing a service within the Council area;

44

(f) Whether the applicant is a public sector body, a private not for profit body or a private or profit body; (g) Whether there are any relevant historical considerations that may be relevant for all or any part of the current

Council term; (h) The desirability of granting a rebate for more than one year in those circumstances identified within

Discretionary Clause of this policy; (i) Consideration of the full financial consequences of the rebate for the Council; (j) The time the application is received; (k) The availability of any community grant to the person or body making the application; (l) Whether the applicant is in receipt of a community grant; and (m) Any other matters, and policies of the Council, which the Council considers relevant.

6. All persons who or bodies which wish to apply to the Council for a rebate of rates must do so on or before 31st

December 2019. The Council reserves the right to refuse to consider applications received after that date. However, applicants who satisfy the criteria for a mandatory 100% rebate will be granted the rebate at any time.

7. The Act provides that the Council may grant a rebate of rates or charges on such conditions as the Council thinks fit. 8. The Council may, for proper cause, determine that an entitlement to a rebate of rates under the Act no longer

applies. 9. Where an entitlement to a rebate of rates ceases or no longer applies during the course of a financial year, the

Council is entitled to recover rates, or rates at the increased level (as the case may be), proportionate to the remaining part of the financial year.

10. It is an offence for a person or body to make a false or misleading statement or representation in an application or to

provide false or misleading information or evidence in support of an application made (or purporting to be made) under the Act. The maximum penalty for this offence is $5,000.

11. If a person or body has the benefit of a rebate of rates and the grounds on which the rebate has been granted cease

to exist, the person or body must immediately inform the Council of that fact and (whether or not the Council is so informed) the entitlement to a rebate ceases. If a person or body fails to do so that person or body is guilty of an offence. The maximum penalty for this offence is $5,000.

12. The Council will, in writing, advise an applicant for a rebate of its determination of that application with in 40 business

days of receiving the application or of receiving all information requested by the Council. The advice will state –

(a) If the application has been granted, the amount of the rebate; or (b) If the application has not been granted, the reasons why.

Delegation

1. The Council has delegated its power, pursuant to Section 44 of the Act, to grant applications for mandatory rebates,

which meet the requirements of the Act. 2. All discretionary rebates shall be determined by Council with the exception of the Rate Cap, which shall be applied

automatically to rate notices.

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Review 1. A person who or a body which is aggrieved by a determination of the Council in respect of an application for a rebate

may seek a review of that decision in accordance with the Council’s Internal Review of Council Decisions Policy within 30 days of the date of the notice of determination which is given pursuant to Applications Clause of this Policy.

Community Grants 1. If an application for a rebate is unsuccessful, the Council has an absolute discretion to then treat the application as

one for a community grant and to determine it in accordance with the Council’s Community Financial Assistance Policy.

Availability of Policy 1. This Policy is available for inspection at the Council offices and persons may obtain a copy of this Policy upon payment

of the fee set by the Council. Record of Amendments

DATE REVISION NO REASON FOR AMENDMENT

14th August 2001 Rev: 00 Draft Rate Rebate Policy

14th July 2004 Rev 01 2004/05 Review of Rebate Policy to include new rebate under Discretionary Rebates (5).

12th July 2005 Rev 02 Annual Review







3rd July 2012 Rev 09 Annual Review

2nd July 2013 Rev 10 Annual Review

1st July 2014 Rev 11 Annual Review




3rd July 2018 Rev 15 Annual Review

2nd July 2019 Rev 16 Annual Review

1st July 2020 Rev 17 Proposed Annual Review

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APPLICATION FORM FOR RATE REBATE

2020/21 Financial Year

• Details of Applicant

Name ................................................................................................................................................................ Address ............................................................................................................................................................. ........................................................................................................................................................................... Telephone ......................................................................................................................................................... If the Applicant is not a natural person, please provide details of a contact person for the Applicant Name ................................................................................................................................................................ Address ............................................................................................................................................................. ........................................................................................................................................................................... Telephone .........................................................................................................................................................

• Details of Land

Certificate of Title Reference ............................................................................................................................ Address ............................................................................................................................................................. ........................................................................................................................................................................... Owner of Land (if not you) ................................................................................................................................

• Categories of Rebate

Please tick the category of rebate under which you are seeking a rebate –

3.1 Mandatory

3.1.1 Health Services: Land being predominantly used for service delivery or administration by a hospital or health centre incorporated under the South Australia Health Commission Act 1976;

3.1.2 Religious Purposes: Land containing a church or other building used for public worship (and any

grounds), or land solely used for religious purposes; 3.1.3 Public Cemeteries: Land being used for the purposes of a public cemetery; 3.1.4 Royal Zoological Society of SA: Land (other than land used as domestic premises) owned by, or

under the care, control and management of, the Royal Zoological Society of South Australia Incorporated.

3.1.5 Community Services: Land being predominantly used for service delivery and administration by

a community services organisation.

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Does your organisation satisfy the following?

(a) Is incorporated on a not for profit basis for the benefit of the public; and (b) Provides community services without charge or for a charge that is below the cost to the body

of providing the services; and (c) Does not restrict its services to persons who are members of the body.

If you have ticked (a), (b) and (c) above which of the following services does your organisation provide –

(a) Emergency accommodation; (b) Food or clothing for disadvantaged persons (i.e., persons who are disadvantaged by reason of

poverty, illness, frailty, or mental, intellectual or physical disability); (c) Supported accommodation (i.e., residential care facilities in receipt of Commonwealth funding

or accommodation for persons with mental health, intellectual, physical or other difficulties that require support in order to live an independent life);

(d) Essential services, or employment support, for persons with mental health disabilities, or with

intellectual or physical disabilities; (e) Legal services for disadvantaged persons; (f) Drug or alcohol rehabilitation services; and/or (g) Research into, or community education about, diseases or illnesses, or palliative care to persons

who suffer from diseases or illnesses. (h) Other – please specify …………………………………………………………

Educational Purposes

Which of the following criteria apply –

(a) Land occupied by a government school under a lease or licence and being used for educational

purposes; or (b) Land occupied by a non-government school registered under Part 5 of the Education Act 1972

and being used for educational purposes; or (c) Land being used by a University or University College to provide accommodation and other

forms of support for students on a not for profit basis. 3.2 Discretionary

The Council may in its discretion grant a rebate of rates or service charges in any of the following cases. Please indicate which of the following is applicable to your application–

(a) The rebate is desirable for the purpose of securing the proper development of the area (or a

part of the area); (b) The rebate is desirable for the purpose of assisting or supporting a business in its area;

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(c) The rebate will be conducive to the preservation of buildings or places of historic significance; (d) The land is being used for educational purposes; (e) The land is being used for agricultural, horticultural or floricultural exhibitions; (f) The land is being used for a hospital or health centre; (g) The land is being used to provide facilities or services for children or young persons; (h) The land is being used to provide accommodation for the aged or disabled; (i) The land is being used for a residential aged care facility that is approved for Commonwealth

funding under the Aged Care Act 1987 (Commonwealth) or a day therapy centre;

(j) The land is being used by an organisation that provides a benefit or service to the local community;

(k) The rebate relates to common property or land vested in a community corporation under the

Community Titles Act 1996 over which the public has a free and unrestricted right of access and enjoyment;

(l) The rebate is appropriate to provide relief against what would otherwise amount to a

substantial change in rates payable by a rate payer due to a change in the basis of valuation used for the purposes of rating, rapid changes in valuations, or anomalies in valuations.

4. Amount of Rebate

If you are seeking a mandatory rebate under Clause 3.2 of this Application, for which you are entitled to a 75% rebate, are you also applying to the Council to increase that rebate?

YES NO Please specify the amount of rebate that you are applying for – ........................................................................................................................................................................... ........................................................................................................................................................................... If you are applying for a discretionary rebate under Clause 3.3 of this Application, please specify the rebate amount you are applying for. ........................................................................................................................................................................... Please specify why you (or your organisation) need financial assistance through a rebate and why the amount of rebate you have applied for is appropriate.

........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ........................................................................................................................................................................... ...........................................................................................................................................................................

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5. Additional Information Required

The Council requires you to attach the following additional information to this Application–

5.1 Where you are seeking a rebate under Clause 3.5 of this Application – Community Services -

5.1.1 Evidence that the land is being used for service delivery and/or administration; 5.1.2 A copy of the organisation’s Constitution and/or other documentation establishing that it is

incorporated on a not-for-profit basis; 5.1.3 A copy of the organisation’s latest Annual Report; 5.1.4 Evidence that the organisation provides services free of charge or below cost; 5.1.5 Evidence that the organisation provides services to persons other than members.

5.2 Where you are seeking a rebate in any other case –

5.2.1 Evidence that the land is being used for the purpose for which the rebate is being sought; 5.2.2 Information as to whether, and if so to what extent, you (or your organisation) will be providing a

service within the Council area; 5.2.3 Whether you have made or intend to make an application to another council; 5.2.4 The extent of financial assistance (if any) being provided by Commonwealth or State agencies; 5.2.5 Whether you are in receipt of a community grant; 5.2.6 Any other information that you believe is relevant in support of this Application.

6. Application Forms

Application forms and all additional information must be submitted to the Council on or before 31st December each year A failure to submit application forms or to provide the additional information required by the Council to assess the application by the due date may result in the Council refusing to consider the application.

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Important Information

It is an offence for a person or body to make a false or misleading statement or representation in an application or to provide false or misleading information or evidence in support of an application made (or purporting to be made) under the Act. The maximum penalty for this offence is $5,000.00, (Section 159 (2) of the Local Government Act 1999). The Council may grant a rebate of rates or charges on such conditions as the Council thinks fit. If a person or body has the benefit of a rebate of rates and the grounds on which the rebate has been granted cease to exist, the person or body must immediately inform the Council of that fact and (whether or not the Council is so informed) the entitlement to a rebate ceases. If a person or body fails to notify the Council that person or body is guilty of an offence and liable to a maximum penalty of $5,000.00, (Section 159 (7) and (8) of the Local Government Act 1999). The Council may, for proper cause, determine that an entitlement to a rebate of rates under the Act no longer applies. Where an entitlement to a rebate of rates ceases or no longer applies during the course of a financial year, the Council is entitled to recover rates, or rates at the increased level (as the case may be), proportionate to the remaining part of the financial year. I declare that the information I have provided on and attached to this application form is true. DATED the day of 20 Signed .........................................................................

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